Morning Gold & Silver Market Report – 3/19/2012
MARKETS OFF TO SLOW START; SILVER SLIGHTLY DOWN
U.S. stock futures are heading lower this morning, as precious metals prices remain steady. Investors have experienced some strong gains in the past several weeks, and it could be they need to take a breather.
Bill Gross, chief executive of PIMCO, the world’s largest bond fund, is forecasting for 2012 another round or two of quantitative easing, muted economic growth and the end of a 30-year bull run in government bonds. Gross points out that long-term interest rates have been rising in recent weeks as a result of increased concerns about inflation and the ending of Operation Twist in several months. Inflation is seen in rising oil and commodity prices. The Consumer price Index has risen 2.9 percent in the past 12 months. Operation Twist was a Fed plan where short-term debt was sold to buy long-term debt. The question on Gross’ mind is that when the Fed quits propping up long-term debt, who will be left to buy?
The New York Mercantile Exchange weekly oil chart has developed a technical pattern (head and shoulders) that would indicate oil prices will continue to rise. The next price target is set at $125.
At 8 a.m. (CDT), the APMEX precious metals spot prices were:
- Gold - $1,658.40 – Up $1.10.
- Silver - $32.56 – Down $0.08.
- Platinum - $1,678.70 – Up $2.20.
- Palladium - $702.50 – Up $0.90.